Asian stocks were set to edge lower as tensions in the Middle East pushed oil prices higher, adding to inflation concerns and keeping investors wary of the prospect of further monetary tightening. The yen held gains near its highest level since February.

Equity-index futures for Japan, Australia and Hong Kong pointed to declines at the open, while those for South Korea signaled gains, tracking advances in Nasdaq 100 contracts. S&P 500 futures dropped after fluctuating in the previous session, when cash markets were closed for a public holiday.

Jane Foley, Rabobank's FX strategy head, discussed the reaction of the dollar following stronger-than-expected payrolls data, noting 'weakened' confidence in the currency.